6 Initial Public Offering Terms Explained
Are you an investor? Then knowing the language of stock market is a must.
An Initial Public Offering, in short, 'IPO' is a promising venture for anyone who needs to increase his company's working capital.
Many traders are constantly on the look out for companies that are about to go public in the market.
Even though it may not make much sense to an English Scholar to learn the language and terminology used on the markets, it means a whole deal to the businessman.
An IPO is basically the company's first business venture with public investors.
It is a profitable method but it requires legal compliances and regular reports.
The IPO is exclusive to the first distribution of common shares among the public.
These shares may be issued again as secondary market offerings with a new set of criteria to be fulfilled.
You will know if a company has opted for an IPO when the approach you with secondary market offerings.
The exclusivity is what attracts the buyers to such shares.
The following is a list elucidating the jargon used in relation to IPO's: 1.
The Investment bankers who undertake the sales of the common stocks are referred to as 'Underwriters' 2.
If the underwriter is associated with the IPO of a multinational, he is referred to as a 'Syndicate', the difference lies only with the size of the IPO.
3.
The IPO process is dictated by the 'Securities Act of 1993'.
It has two main goals, i.
e.
, (1) All information regarding the securities which are to go on sale in public, should be handed over to the investors.
(2) Check the spread of scandals like counterfeit, forging, misinterpreting, the like while selling them to the public.
4.
A 'prospectus' is a document containing vital statistics story, finances, industry background, and other related information which is inspected thoroughly by The U.
S.
Securities and Exchange Commission (SEC).
5.
'Gun-Jumping- no Beretta jumps around the process' is the term given to a prohibition issued to the company selling the common stocks and the underwriter from making any sort of offers to the public.
6.
The stage when underwriters are expected to function is when the stocks are opened for purchase by the public through different methods.
This period is called 'free riding Once you are familiar with the IPO jargon, it will become a lot easier to comprehend and work with, and you will be able to appreciate it from the in the shoes of a businessman.
If you are totally out of tune with this terminology you could well feel like a fish out of water on the market floors.
So maybe if you are a total beginner, you could work towards learning the terms from friends and colleagues who are already into stocks.
An Initial Public Offering, in short, 'IPO' is a promising venture for anyone who needs to increase his company's working capital.
Many traders are constantly on the look out for companies that are about to go public in the market.
Even though it may not make much sense to an English Scholar to learn the language and terminology used on the markets, it means a whole deal to the businessman.
An IPO is basically the company's first business venture with public investors.
It is a profitable method but it requires legal compliances and regular reports.
The IPO is exclusive to the first distribution of common shares among the public.
These shares may be issued again as secondary market offerings with a new set of criteria to be fulfilled.
You will know if a company has opted for an IPO when the approach you with secondary market offerings.
The exclusivity is what attracts the buyers to such shares.
The following is a list elucidating the jargon used in relation to IPO's: 1.
The Investment bankers who undertake the sales of the common stocks are referred to as 'Underwriters' 2.
If the underwriter is associated with the IPO of a multinational, he is referred to as a 'Syndicate', the difference lies only with the size of the IPO.
3.
The IPO process is dictated by the 'Securities Act of 1993'.
It has two main goals, i.
e.
, (1) All information regarding the securities which are to go on sale in public, should be handed over to the investors.
(2) Check the spread of scandals like counterfeit, forging, misinterpreting, the like while selling them to the public.
4.
A 'prospectus' is a document containing vital statistics story, finances, industry background, and other related information which is inspected thoroughly by The U.
S.
Securities and Exchange Commission (SEC).
5.
'Gun-Jumping- no Beretta jumps around the process' is the term given to a prohibition issued to the company selling the common stocks and the underwriter from making any sort of offers to the public.
6.
The stage when underwriters are expected to function is when the stocks are opened for purchase by the public through different methods.
This period is called 'free riding Once you are familiar with the IPO jargon, it will become a lot easier to comprehend and work with, and you will be able to appreciate it from the in the shoes of a businessman.
If you are totally out of tune with this terminology you could well feel like a fish out of water on the market floors.
So maybe if you are a total beginner, you could work towards learning the terms from friends and colleagues who are already into stocks.
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